26. If we observe that a consumer's budget constraint has shifted inward, we can assume that theconsumer will buya. more normal goods and fewer inferior goodsb. fewer normal goods and more inferior goodsC. more normal goods and more inferior goodsd. fewer normal goods and fewer inferior goods

Consumer's budget constraint shift inward during a decrease in income.

Answered: 26. If we observe that a consumer's…

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26. If we observe that a consumer's budget constraint has shifted inward, we can assume that the consumer will buy

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 5CQQ

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Product and Price Bundling

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Question

26. If we observe that a consumer's budget constraint has shifted inward, we can assume that the
consumer will buy
a. more normal goods and fewer inferior goods
b. fewer normal goods and more inferior goods
C. more normal goods and more inferior goods
d. fewer normal goods and fewer inferior goods

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